MJ,
1. Cancel this sales order and create a sales order of qty 9402 (equal to the ATP qty in CO09) or less qty (e.g. 9400).
This is very important.
And send us the screenshots, after doing the above steps.
2. In the screenshot with Schedule lines (sales order), give the entire screenshot? (how many schedule lines were created??
3. Are you doing this in your test system or your PRD system?